ENTERPRISING ATTITUDE DRIVES DEALS, SAYS FHP

Industrial/Warehouse News

Doom and gloom headlines about the national economy are missing an important story about growth at the grassroots. FHP Surveyor Mark Tomlinson explains how this is translating into demand at an appropriately-named business park in Nottinghamshire.

The 2012 Budget was one of those rare occasions where there was a positive focus on business – an acknowledgement that it is the UK’s army of entrepreneurs who will drive recovery and one or two measures which might help them achieve it.

It makes a welcome change from some of the headlines we have been living with over the past few months, which have laboured relentlessly on rising unemployment, spiralling inflation and a eurozone crisis that has dragged on so long it seems like a soap opera. Taken together, this negative news knocks confidence.

That is the theory, anyway. But from what I have seen in Nottinghamshire over the past few months, business at the grassroots is desperately trying to get away from this downbeat approach. Start-ups, small firms and growing businesses are all looking to find a way forward. The evidence surfacing in the commercial property market is that the spirit of enterprise is actually alive and well, with healthy demand for both industrial units and small offices on both leasehold and freehold terms.

There is no better place to see it in action than at Enterprise Park at Hucknall, an industrial estate with units from 1,400 sq ft upwards which is well-placed to serve the industrial heartland of the local economy. Since Christmas, we have completed leases on six units and we are now discussing terms with a number of other potential occupiers. All of these businesses are either start-ups or small, local businesses looking to grow – encouraging evidence that the kind of grassroots growth that the UK has been crying out for is there to be found if you look for it.

We are also seeing some of the classic signs of a market which may be approaching some kind of tentative turning point at the grassroots. There is a shortage of supply of units under 2,000 sq ft and this is inevitably pushing up the freehold values of those premises which are available. A case in point is an industrial unit close to Nottingham city centre which we sold only recently. It was well-presented, suitable for a variety of different uses and the price tag of £125,000 reflect the lack of supply.

Just how strong demand is, was illustrated by the fact that the unit became the subject of a best bids process from a number of interested parties. The result? We have just completed a sale not for £125,000 but for £137,000. This is much better than we had anticipated and demonstrates that the demand from business is out there.

While the office market remains more challenging territory at the moment, the lower end of the market is also showing some positive signs with, once again, the demand coming from small and newly-formed companies. Quantum House on College Street in Nottingham, which underwent refurbishment last summer, is now almost full with 11 offices let during the last seven months.

In another encouraging sign, we have also sold and office building on Friar Lane and put another under offer, with the strong demand driven by the limited supply of alternatives. This goes to show that, despite the sentiment, now is not a bad time to sell your property and reinvest the proceeds elsewhere.

The market remains a long way off the boom conditions we enjoyed just a few short years ago. But business has had enough of the negative news. Yes, it’s still challenging but the evidence is that small and medium-sized companies in Nottinghamshire would rather focus on making progress. We’re here to help them do that, and one way to move forward in a cautious climate is to tap into sound market knowledge of the commercial property market. Here’s to a year of enterprise!

For further information contact Mark Tomlinson at FHP on 0115 950 7577